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					CDE-40 Reimbursement
Report- Understanding
the Audit Process
         General  Information
             Audit Process
           Preparation Tips
                  FAQ
     Documentation Requirements
       Common Audit Exceptions
              What’s new
    Transportation
    General Information FY 2006-07
   School Districts/BOCES must submit the Pupil
    Transportation Reimbursement Claim (Form CDE-
    40) to CDE for the July 1, 2006 – June 30, 2007
    reimbursement period. C.R.S. 22-51-105(1).

   Must be filed on or before August 15th, 2007

   CDE-40 and Instructions can be found on the CDE
    website
       http://www.cde.state.co.us/cdefinance/sftransp40.htm
Transportation – General
Information
   Current Operating Expenditures – Actual expenses that
    have been incurred by the district to transport students
    from home to school, school to school and school to
    home.
   Reimbursable Expenditures-Allowable costs to be
    reported on line 1 of the CDE 40. Expenditures can be
    salary and benefits for personnel used EXCLUSIVLEY to
    transport students from home to school, school to school
    and school to home. Eligible expenditures: parent
    mileage, fuel, employment costs, training directly related
    to pupil transportation, insurance for vehicles directly
    related to pupil transportation.
General Information Continued
   Reimbursable Expenditures- Additional eligible
    costs include contracts with third parties that
    directly relate to pupil transportation less any
    applicable capital outlay, alterations and
    additions to vehicles owned by the district for a
    minimum of 3 years and repair and maintenance
    costs that restore vehicles, facilities and
    equipment to their original condition. ( Not
    intended to be an exhaustive list of allowable
    costs.)
General Information Continued
   Nonreimbursable Expenditures – Costs that
    should be omitted from the CDE 40. These types
    of cost are capital outlay, awards, banquets,
    advertising, alterations or additions to vehicles
    owned for less than 3 years, costs relating field
    trips, extracurricular activities or athletic trips,
    liability claims and all expenditures relating to
    district vehicles that are not for the specific
    purpose of pupil transportation. ( Not intended to
    be an exhaustive list of allowable costs.)
    Audit Process

   Large Districts
     Audits   are done annually.
   Medium Size Districts
     Audits   are done every 2 or 3 years.
   Small Districts
     Audits are done every 4 or 5 years. However, it is
      a goal to have smaller districts audited every 4
      years.
Audit Process Continued
 Auditor contacts district to set up an
  appointment to begin the audit.
 Auditor usually starts with the pupil count.
 Auditor will leave a list of questions and/or
  schedule of potential findings.
 Auditor generally allows two weeks to
  answer questions or clarify issues.
Audit Process Continued
 A draft report is issued. The district is
  allowed 30 days to submit additional
  documentation.
 Final report is issued.
 Payment questions should be addressed
  to Dave Grier at 303.866.6801 or
  grier_d@cde.state.co.us
Preparation Tips
   Worksheet clearly documenting how
    current operating expenditures were
    calculated. (Refer to Handout Page 3)
                         Preparation Tips-Sample Worksheet
                                                 Operating
                                               Expenditures as    Reimbursable            Reimbursable at
Expenditure Category                              of 6/30/03         at 100%                Prorated %              Non-Reimbursable

Driver Salaries*                                   $11,144.20    $     11,144.20
Activity Driver's Salaries                           2,500.00                                                                 2,500.00
Substitute Driver Salaries*                          1,357.59           1,357.59
Benefits*                                            4,633.58                                       4,633.58
Parent Mileage Reimbursement                         7,429.20           7,429.20
Insurance                                            2,110.00                                       2,110.00
Purchased Services                                     561.60                                         561.60
Towing                                                   0.00                                           0.00
Fuel                                                 6,091.88                                       6,091.88
Oil                                                    307.88                                         307.88
Tires                                                    0.00                                           0.00
Parts                                                  794.93                                         794.93
Maintenance                                          3,708.19                                       3,708.19
Supplies                                                 0.00                                           0.00
Non-reimbursable Salaries & Benefits                 2,063.11                                                                 2,063.11
Non-reimbursable expenses for field trips              264.79                                                                   264.79
Equipment                                                0.00                                                                     0.00


                                                   $42,966.95         $19,930.99                 $18,208.06                 $4,827.90

Administrative Expenses                              4,990.00                                       4,990.00
(Supervision & support salaries, etc.)

Total All Expenditures                             $47,956.95         $19,930.99                 $23,198.06                 $4,827.90

*Driver salaries and benefits may not always be 100% reimbursable.

How to calculate allocation percentage:                          How to calculate current operating expenditures:   Shared Cost Calc:

Reimburseable Miles                                  55,496.00   Costs at 100%                   $19,930.99                $23,198.06
Non reimbursable Miles                               29,504.00   Shared Costs                      15,145.88                   65.29%
Total Miles                                         85,000.00                                                              $15,145.88
                                                                 Current
                                                                 Operating
                                                                 Expenditures                    $35,076.87
Allocation Percentage(Apply to shared costs)           65.29%
Preparation Tips
   Do an annual comparison of the CDE -40.
    (Begin with the last year audited.) Account
    for any material differences within the
    reporting categories.
    (Refer to Handout Page 4)
Preparation Tips – Comparison
Worksheet
   CDE 40 Comparison:

                                                       FYE 06/30/02   FYE 06/30/03   FYE 06/30/04   FYE 06/30/05

   Current Operating Expenditures (Line 1)               160,000.00     178,000.00     200,000.00     215,000.00

   Migrant Miles ( Line 2)                                      -              -              -              -

   Count Day Mileage ( Line 3)                                 500             600            800            800

   Days students are transported ( Line 4)                     172             170            171            171

   Room and Board ( Line 5)                                     -              -              -              -

   Pupils transported on count day ( Line 6)                   530            530            530            530

   Activity Miles (Line 7)                                   56,000         45,000         30,000         35,000

   Total Miles (Line 8)                                     137,000        150,000        145,000        160,000



   Calculated Information:

   Route Miles (Line 8 - Line 7)                             81,000        105,000        115,000        125,000

   Non Reimbursable Percentage (Line 7/Line 8)               40.88%         30.00%         20.69%         21.88%

   Reimbursable Percentage( Route Miles/Total Miles)         59.12%         70.00%         79.31%         78.13%
    Transportation
    Frequently Asked Questions
   Question: School was closed at noon on Thursday and did
    not open at all on Friday due to snow. How many snow days
    should be claimed?
   Answer: One snow day.

   Question: Can parent miles driven on the count day be
    reported on the CDE-40?
   Answer: Parent miles should be included in the reported
    mileage on Line 3 of Form CDE-40. However, parent miles
    are recorded as ACTUAL miles traveled, not scheduled
    miles.
    Transportation
    Frequently Asked Questions
   Question: Can Capital Outlay expenditures over $1000 be
    included in reimbursable expenditures?
   Answer: Any repair or maintenance expenditure for pupil
    transportation vehicles owned or facilities may be included in
    current operating expenditures for reimbursement. An
    upgrade or improvement to a pupil transportation vehicle
    must have prior approval if the cost is over $1000 and is not
    listed in the transportation rules.(Refer to Handout page 5)
    Transportation vehicles must be owned for a minimum of
    three years for the cost or additions to be reimburseable.
    Any type of upgrade or improvement to a pupil transportation
    facility is considered to be a capital outlay expenditure.

    *Please contact CDE if you are unsure or need clarification.
Transportation
Frequently Asked Questions
   4.01(16) A district shall include the cost of the following types of additions or alterations to pupil
    transportation vehicles.
   1.      manual transmission to automatic transmission
   2.      gas engine to diesel engine or alternative fuel
   3.      reflective tape on the outside of vehicle
   4.      electro-magnetic or hydraulic retarder
   5.      heated mirrors
   6.      engine compartment noise reduction package (diesel engine in front engine transit only)
   7.      driver seat belt to current standards (locking retractor type)
   8.      air brake drying system
   9.      mirror system to provide a seated driver an unobstructed view of the front and front sides
    of a bus
   10.     wheelchair lifts and other special modifications which are necessary to equip a school bus
    in order to transport children with disabilities
   11.     automatic tire chains
   12.     video surveillance cameras
   13.     other additions or alterations with prior written approval by the department which increase
    efficiency and safety or are necessary to meet minimum standards.
    Transportation
    Frequently Asked Questions
   Question: Can expenditures incurred for non-reimbursable miles
    (i.e. field trips and athletics) be included in current operating
    expenditures?

   Answer: A district should claim only regular route pupil
    transportation miles. Expenditures related to any other type of
    transportation may not be claimed for reimbursement from CDE.

   Question: How should expenditures that are shared between
    reimbursable and nonreimburseable be reported on the CDE-40?

   Answer: The costs must be allocated using the formula listed below :
        Total Odometer Miles - Non-reimbursable miles
              Total Odometer Miles
Documentation Requirements
   CDE 40 along with the worksheet that calculates reported
    items.
   Calendar indicating days students were transported excluding
    snow or mud days.
   Beginning and ending odometer readings for all transportation
    vehicles.
   General ledger balances that include account details for
    amounts reported in current operating expenditures.
   Mileage records for activity and any other nonreimburseable
    miles.
   Scheduled count day mileage with route descriptions and
    student lists.
Common Audit Exceptions
   Not allocating shared costs. For example,
    benefits, fuel and repairs.
   Incorrectly calculating shared cost percentage.
   Not using beginning and ending odometer
    readings.
   Incorrectly counting number of days students
    are transported. For example, not excluding
    snow or mud days.
   Not excluding capital outlay items.
    Transportation
    New to the CDE-40
   Summer Migrant Transportation Verification
    Form
     Ifyou are operating a summer migrant
      education program and claiming miles for
      migrant transportation, on line 2 of the CDE-40,
      the Summer Migrant Transportation Verification
      Form must be completed and attached to the
      CDE-40.
 Transportation
 New to the CDE-40
 Specialized   Transportation Information
  This  information is used only for Medicaid
   rate setting and will not be used to
   calculate the district’s reimbursement
   entitlement because the costs are already
   included in Line 1 of the CDE-40.
    Transportation
    New to the CDE-40
   Definition of “Specialized Transportation Costs”
     Specialized  transportation costs are those costs for
      transportation services provided to those students with
      whose IEPs specify transportation as a related service.
      Each student’s IEP team is responsible for deciding
      whether the student needs specialized transportation
      services. The costs for specialized transportation services
      may include such categories as the cost of owning and
      operating the vehicles; specialized equipment, (such as
      special or adapted buses, lifts, and ramps); maintenance;
      the salaries, benefits, and insurance of related services
      personnel (e.g., a one-on-one aide whose assistance is
      necessary in order to enable the student to ride the bus,
      etc.); and other associated overhead.
    Transportation
    Specialized Transportation Cost
   Calculation of Specialized Transportation Costs
     Total cost of specialized transportation for school
      year (CDE-40 Line 9) / Number of students
      receiving specialized transportation - both
      Medicaid and non-Medicaid (CDE-40 Line 10) /
      Number of days of school when special
      education students were transported during
      school year (CDE-40 Line 11)
      = Daily Specialized Transportation Rate
Contact Information
Tracey Cantrell, Audit Supervisor

Email address: cantrell_t@cde.state.co.us

Phone Number: 303.866.6880

Where to find training documents:

http://www.cde.state.co.us/cdefinance/auditunit.htm